CEO orders fresh start at Puma
Following disappointing sales, newly appointed Puma CEO Arthur Hoeld has sharply cut the company’s full-year forecast, and announced a strategic overhaul of the sportswear group. Hoeld, who took over in early July and previously served on the executive board of rival Adidas, described the move as a „reset“ during a call with journalists. He said 2026 would be a transitional year, with a more detailed strategy to be presented by the end of October.
When asked about past missteps and the departure of predecessor Arne Freundt in April, Hoeld remained vague, stressing instead the need to lay a solid foundation for sustainable and profitable growth.
Puma’s management now expects a loss at the Ebit level for 2025, abandoning its previous guidance of 445 million to 525 million euros profit. Instead of modest currency-adjusted revenue growth, the company now anticipates a low double-digit percentage decline.
In the second quarter, sales fell by 2% to 1.94 billion euros, while adjusted Ebit dropped to –13 million euros. The bottom line showed a net loss of 247 million euros.
Sales channels under scrutiny
Hoeld signaled a clear break with Freundt’s brand strategy, including the high-profile campaign launched earlier in 2024, which Freundt had touted as Puma’s largest ever. Hoeld aims to strengthen the brand while revisiting the composition and quality of its sales channels.
CFO Markus Neubrand attributed the weak second-quarter results and subdued outlook to lower-than-expected sales and gross margin, elevated inventories, and the impact of higher US import tariffs. Additional pressure came from „Next Level“, a cost-efficiency program initiated under Freundt.
Neubrand expects US tariffs to weigh on gross profit by around 80 million euros this year despite efforts to optimise the supply chain. Puma will continue reducing manufacturing in China for products being exported to the US, relying more heavily on hubs such as Vietnam, Cambodia, and Indonesia. The US accounts for roughly 20% of Puma’s revenue.
High inventory levels weigh on performance
Puma is also grappling with unfavourable currency effects, and a nearly 10% rise in inventory. CFO Neubrand explained that the buildup was partly due to increased US imports ahead of tariff increases. Excess inventory is a problem for the industry, as shown during the Covid-19 pandemic. In most cases, stock reductions require markdowns, and have already put pressure on Puma’s gross margin in the second quarter.
The quarterly loss includes approximately 85 million euros in one-off charges, mainly tied to the planned elimination of 500 jobs under the efficiency program. Additional cost-cutting measures remain under consideration. The company also recorded goodwill impairments.
